Rallies are Normal in a Bear Market

From Up and Down Wall Street in Barrons

Indeed, as the estimable David Rosenberg of Merrill Lynch, who consistently comes up with some great stuff, points out, in the 2000-2002 bear market, there were no fewer than 16 rallies of at least 5% in the S&P, each lasting on average about a month, and no fewer than 35 bounces of 5% or more in the Nasdaq (which still managed to wind up losing nearly 80% of its value).

We would be in week 2 of the rally though we are already over 5%. I said two weeks ago I would not be surprised to see the Dow test 13,000 and maybe even surpass it. I still think that but the monolines play a huge roll. A collar (option strategy) may be a good bet on the market.